Money Matters - Simplified

Market rally falls flat

New York -- A market rally faded Monday as the dollar index rose on fears that Ireland may need to borrow to dig itself out of its financial crisis.

Worries over Ireland eroded confidence in the euro, sending the dollar index 0.69 percent higher, which weighed on commodities and took the legs out from under modest gains on Wall Street.

Markets rose early after the Commerce Department issued a positive report on the nation's retail sector. But most of the gains did not hold.

Commerce said U.S. retail rose 1.2 percent in October compared to September and gained 7.3 percent compared to October a year ago. Auto and motor vehicle sales were up 14.7 percent from the same month of 2009. Non-store retail receipts, catalog and Internet sales, were up 13.5 percent from a year ago.

By close of trading on Wall Street, the Dow Jones industrial average added 9.39 points or 0.08 percent to 11,201.97. The Standard & Poor's 500 index lost 1.46 or 0.12 percent to 1,197.75. The Nasdaq composite index gained 4.39 or 0.17 percent to 2,513.82.

On the New York Stock Exchange, 1,386 stocks advanced and 1,577 declined on a volume of 4.1 billion shares traded.

The benchmark 10-year Treasury note fell 1 16/32 to yield 2.961 percent.

The euro fell to $1.3585 from Friday's $1.3693. Against the yen, the dollar rose to 83.06 yen from Friday's 82.44 yen.

The Nikkei 225 index in Japan rose 1.06 percent, 102.70, to 9,827.51.

In Britain, the FTSE 100 index added 0.41 percent, 23.54, to 5,820.41.

Copyright 2010 United Press International, Inc. (UPI).

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